AfterDawn: Tech news

Blockbuster once again on brink of bankruptcy?

Written by Andre Yoskowitz (Google+) @ 17 May 2010 23:27 User comments (25)

Blockbuster once again on brink of bankruptcy? According to Dallas Business Journal, video rental giant Blockbuster is once again on the brink of bankruptcy, with their latest financial statement saying cash on hand and cash flow will only give the company 12 months at most.
At that point, the company would not be able to pay off its debts, and Chapter 11 bankruptcy would become "an option."

However, the company said it was just using cautionary language when bringing up the option of Chapter 11 bankruptcy, and that shareholders should not be worried.

At the very least, the company concedes it will need to close more stores as it will not meet the financial goals it hoped for 2010.

"The operating environment continues to be challenging, but we have made significant progress during the past year in reducing costs," adds Jim Keyes, CEO. "We believe we will continue to have adequate liquidity during 2010 through efforts including divesting non-core international assets, significantly improving working capital, continuing to reduce operating costs, and improving credit terms. Since there are execution risks related to these objectives, we are simultaneously pursuing a recapitalization and are in discussions with bond holders and other parties to improve our liquidity."

Previous Next  

25 user comments

117.5.2010 23:36

It still amazes me that that place exists...a terrible business model, terrible selection, terrible prices, terrible employees...I would rather be board for a couple of hours than have to deal with blockbuster.

218.5.2010 1:16

Originally posted by KillerBug:
I would rather be board for a couple of hours than have to deal with blockbuster.
I would also rather be a piece of wood.

318.5.2010 1:36

I second that motion. Being a piece of wood sounds way cooler than going to blockbuster.

418.5.2010 2:30

i dont use the anymore and havent for about 4 years but they have put their prices down you can now get four films for 10 which i dont think is too expensive

518.5.2010 9:02

kil it wif ffyyyyyiiiaaaaaaaaaa!!!!!!!!!!!!!!!!!!

618.5.2010 9:06

When I want to start a business that will be last on my list or don't include it at all


Nothing beatsTaiyo Yuden CDs

718.5.2010 9:12

I hope they stay open. Blockbuster is the only place in town to rent from that has a good selection. Renting online is not an option yet. Our internet is getting worse not better, so I can't see that becoming an option for quite a while.

818.5.2010 9:35

Originally posted by snardos:
I hope they stay open. Blockbuster is the only place in town to rent from that has a good selection. Renting online is not an option yet. Our internet is getting worse not better, so I can't see that becoming an option for quite a while.
netflix is better.

918.5.2010 12:42

Originally posted by ZippyDSM:
netflix is better.
Netflix is not available outside of the U.S. Here in Canada we have a few Netflix wannabes. None of them offer online streaming, wait times for a new release can be 6+ months and prices are fairly high.

I rarely go to Blockbuster, but there aren't many options.

1018.5.2010 12:44

Originally posted by hikaricor:
Originally posted by KillerBug:
I would rather be board for a couple of hours than have to deal with blockbuster.
I would also rather be a piece of wood.
Originally posted by Racem22:
I second that motion. Being a piece of wood sounds way cooler than going to blockbuster.
You got me to chuckle with those...

1118.5.2010 18:08
Nomo Blockbuster
Unverified new user

"Blockbuster" and "good selection" never belong in the same sentence unless the words "doesn't have" lie between them. All too often customers go to Blockbuster and do not find what they are looking for. Netflix capitalized on this flaw, and then some. Need I say more?

1218.5.2010 18:16

I've been using Blockbuster online in the UK to rent blu-rays , pay 15 a month but get them to deliver about 18 movies a month even after the postal service turnaround time so it seems good value. The only problem is that a lot of movies that they advertise as being available for rent , I don't think they actually have them in stock - the first 17 on my rental list have been there for up to 3 months in some cases now, with no movement and they are not the latest releases. I can't believe Poltergeist, Quo Vadis, Bonnie & Clyde, 2001 A Space Odyssey , Clockwork Orange, Goodnight & Good luck , East Is East * The Deer Hunter can be rented out every time they come to look at my list.
Guess i'll have to cancel soon as i'm reaching the end of my list and i'm not going to keep paying when they aren't delivering.

1318.5.2010 18:59

Man, Blockbuster sucks. $5 for a five day rental of ANY movie? I may as well wipe my ass with my five dollar bill.

There's a (much smaller) chain rental place in my town called Family Video. That place is a model rental store, and what every rental place should aspire to be. The majority of their movies are two for a dollar for five days, and the rest (non-new-releases) are a buck. Their game rentals are really cheap, too.

1418.5.2010 21:51
kubapolak
Inactive

They haven't innovated anything throughout the years, the only thing that changed is the price for the rental...I am glad that they are going down.

1518.5.2010 22:22

Originally posted by kubapolak:
They haven't innovated anything throughout the years, the only thing that changed is the price for the rental...I am glad that they are going down.
Don't forget their half-a*sed attempts at copying netflix and redbox...long after each had gained a foothold.

No one can match the selection of movies that netflix offers. Amazon could if they wanted to, but they don't offer a netflix-like service...yet.

1619.5.2010 8:57

Netflix is a great idea. But say it is Sunday night, you have nothing to do, so you decide to watch a movie. You live in Canada so you don't have access to Netflix streaming. As far as I know your only choices would be to go to the rental store or wait at least 5 hours for the movie to download from a less legal source. If anyone can suggest a different way that would be great.

1719.5.2010 21:03

Originally posted by rkrocks123:
There's a (much smaller) chain rental place in my town called Family Video. That place is a model rental store, and what every rental place should aspire to be. The majority of their movies are two for a dollar for five days, and the rest (non-new-releases) are a buck. Their game rentals are really cheap, too.
I agree 100% Family Video kicks BlockBusters ass in every way shape and form!
I have 3 of them within 15 minutes of my house. It's funny, they're always packed and the employees are super friendly versus BB. I rent games there for my kids all the time...can't beat the price!

1821.5.2010 18:09

Originally posted by ZippyDSM:
Originally posted by snardos:
I hope they stay open. Blockbuster is the only place in town to rent from that has a good selection. Renting online is not an option yet. Our internet is getting worse not better, so I can't see that becoming an option for quite a while.
netflix is better.
Netflix holds new releases for 30 days after they are released on a tue because the studios want you to buy the darn things,I just want to rent them,They caved into hollywood.Everybody knockin Block Buster,"they have rude service","their to high"they got same deals as netflix plus you can take your mailers in and exchange them on Tuesday when a new release comes out,plus they got a kiosk at Speedway gas stations,a redbox is next door at MacDonalds.BB took all the buisness,$1 a day new releases plus Bluray coming soon,can't beat it.I get about 15 Bluray movies a month for $16.00.This comment is for the others who dis BB so much not just you zippy!

1921.5.2010 19:00

I like redbox on the rare occasion I choose to rent a DVD. I go online, book what I want at the box closest to me that has it and go pick it up. I'm in a good area and there are probably 8 boxes within two miles in any direction.

I used to go to BB before redbox and hated it.

2021.5.2010 19:38

Until BB raised their prices on 3 out at a time from $25 to $34. They had everyone beat. And my BB people were very helpful and courteous. I was getting 3 on line and 3 free new Tue releases a week-24 at least a month. About a dollar movie. It pi$$ed me off for the increase and I canceled my online BB. I still rent the new releases and get an oldie free for every new one. Near me if you want a new Tue release, it's buy it or go to BB. Redhat has few kiosks that I've seen!

2121.5.2010 22:45

Originally posted by rkrocks123:
Man, Blockbuster sucks. $5 for a five day rental of ANY movie? I may as well wipe my ass with my five dollar bill.

There's a (much smaller) chain rental place in my town called Family Video. That place is a model rental store, and what every rental place should aspire to be. The majority of their movies are two for a dollar for five days, and the rest (non-new-releases) are a buck. Their game rentals are really cheap, too.
Good point. Local stores with large selections that know their area will beat Blockbuster every time. For the hit movies, what does Blockbuster offer that Red Box does not?

2221.5.2010 23:15

Originally posted by garmoon:
Until BB raised their prices on 3 out at a time from $25 to $34. They had everyone beat. And my BB people were very helpful and courteous. I was getting 3 on line and 3 free new Tue releases a week-24 at least a month. About a dollar movie. It pi$$ed me off for the increase and I canceled my online BB. I still rent the new releases and get an oldie free for every new one. Near me if you want a new Tue release, it's buy it or go to BB. Redhat has few kiosks that I've seen!
I forget,I think I get 2 out at a time for 16 bucks,I got 5TB's full of BD rips,I trade them in at local BB,I can trade 5 a month with my plan, and get all I can mailers.As soon as I get them,Bam to the HDD and go get the next,I keep it rollin.I get more than my monies worth.That's one of the reasons why I like them

PC Specs:GW GM5664,AMD 9600 Quad core,Vista Home Premium 2.3ghz 3600fsb,LG GGC-H20N multi dr(blu-ray/HD-DVD/dvd/cd-rom,2 500GB HDD's,PDVD Ultra 7.3,Cyberlink Hi Def Suite,LG 47LC7DF 47' LCD HDMI through ATI HD2400xt video card,22' LG Flatron DVI hookup
Dell E310 MCE 2005,P4 2.80ghz,Sony dvd-rom,LG burner,AnydvdHD,Clonedvd2,Imgburn 2400,

2322.5.2010 5:07

You could do the same with netflix...for the price of the 3-at-a-time BB plan, you could get a netflix plan with 5 (actually, it is $3 less, even with bluray), and you would be getting more movies without needing to drive to BB.

"Until BB raised their prices on 3 out at a time from $25 to $34. They had everyone beat."

Not really; their selection has never been anywhere close to the netflix selection; I can't justify spending $25 to not get the movies I want when I can get them for $20 somewhere else.

2422.5.2010 9:23

Originally posted by KillerBug:
You could do the same with netflix...for the price of the 3-at-a-time BB plan, you could get a netflix plan with 5 (actually, it is $3 less, even with bluray), and you would be getting more movies without needing to drive to BB.

"Until BB raised their prices on 3 out at a time from $25 to $34. They had everyone beat."

Not really; their selection has never been anywhere close to the netflix selection; I can't justify spending $25 to not get the movies I want when I can get them for $20 somewhere else.
But killerbug I would not be getting the new releases on Tuesdays, the day they come out. I'd be waiting. Also I am a lot older than you, probably, and I was on Netflix first and then BB. I was getting all the old movies to watch from my childhood to present and had trouble finding only a couple and neither had them. I'm not promoting BB by any means $5+ is horrible price for a rental. For me BB worked, was fair, and close. Now it's a little pricey.

Edit: as a sideline, my BB store is BIG and has lots of movies.
This message has been edited since its posting. Latest edit was made on 22 May 2010 @ 9:25


2522.5.2010 10:06

Originally posted by KillerBug:
You could do the same with netflix...for the price of the 3-at-a-time BB plan, you could get a netflix plan with 5 (actually, it is $3 less, even with bluray), and you would be getting more movies without needing to drive to BB.

"Until BB raised their prices on 3 out at a time from $25 to $34. They had everyone beat."

Not really; their selection has never been anywhere close to the netflix selection; I can't justify spending $25 to not get the movies I want when I can get them for $20 somewhere else.
you are missing my point,I trade my mailers in for new releases,plus get them in the mail.I don't have to wait for "short wait,long wait" until it gets my turn,until I have exhausted my 5 trade ins.I do not need 3 out at a time,I got 2 out a time,unlimited and 5 trade in at local BB for,(they did raise me $2)$18.00 a month.If I had to wait for a mailer only,I would cancel

PC Specs:GW GM5664,AMD 9600 Quad core,Vista Home Premium 2.3ghz 3600fsb,LG GGC-H20N multi dr(blu-ray/HD-DVD/dvd/cd-rom,2 500GB HDD's,PDVD Ultra 7.3,Cyberlink Hi Def Suite,LG 47LC7DF 47' LCD HDMI through ATI HD2400xt video card,22' LG Flatron DVI hookup
Dell E310 MCE 2005,P4 2.80ghz,Sony dvd-rom,LG burner,AnydvdHD,Clonedvd2,Imgburn 2400,

Comments have been disabled for this article.

News archive